Taking A Look At Southwest Airlines

Southwest Airlines

Little did Southwest Airlines know that on June 18, 1971, they would become well known for providing customer service with a sense of warmth, friendliness, individual pride, and company spirit. Herb Kelleher, the founder of Southwest Airlines, created the business model for Southwest on the back of a cocktail napkin. The business model transformed the aviation industry by providing regional air service at an affordable price with reliable service. In the past forty-four consecutive years Southwest has displayed their fundamental success, economic conditions and operational challenges, and their future trends in order to maintain continued profitability.

Southwest’s fundamental success can be tied back to Herb Kelleher’s

Lower fuel prices have helped the airline industry experience higher profits. The industry has experienced a major customer service nightmare due to the United Airlines incident that has put the industry under a microscope. This incident may not just affect the aviation industry but all industries that deal with the consumer. The other airlines are taking note of this occurrence and are reviewing and improving their policies and procedures to ensure that this will not occur to their customers. Instead of offering vouchers for over booked flights the airlines are now offering cash incentives to be bumped from flights. The airlines would rather do this than be involved in a public relations nightmare. The above situation should not affect Southwest as they are continuously ranked high in customer satisfaction due to their philosophy. As noted on Southwest’s website, “At Southwest Airlines, we have a healthy obsession with improving the Customer Experience. It’s always a top priority, and we view it as a journey—not a destination.” Southwest Airlines has faced many operational challenges during its existence. One of the major issues that Southwest has faced is dealing with the labor groups. Recently Southwest experienced a computer glitch, which resulted in more than 1,800, flights being canceled. On the heels of the computer glitch, the labor groups called for the removal of upper

With the investment in the reservations systems, efficiency will improve. Southwest is focusing on marketing to the business traveler. They offer a flexible cancellation policy, which allows customers to cancel their reservation up to thirty minutes prior to the flight’s departure as well as no baggage fees. Southwest will continue to attract customers by offering attractive price incentive trips. They are future minded; they are always looking forward by evaluating their operations from turn around time, size of aircraft, and relationships with their employees, customers and suppliers. They are always looking to make adjustments. They have differentiated themselves in the aviation industry.

Southwest Airlines will continue economic and operational challenges, but they have successfully overcome them in the past, and will continue to do so. Southwest strives to follow the Golden Rule for their customers as well as their employees. In February of 2017 Fortune, for the 23rd consecutive year named Southwest Airlines as #8 in the list of World’s Most Admired Company. Southwest has become the most loved, flown, and profitable airline company to